Build Non-Conforming Single Family? Too Risky?

Question

I currently own a single family rental in a single family zone right in the heart of the city of Seattle. The home is old, built in 1919 with original plumbing, wiring and two major floor to ceiling cracks in the foundation. The lot is 6,250 SF and the home is 2,320 SF.  I own it free and clear and I make a pathetic $1,200/month (compared to what I could get if the home weren't in such bad shape).

The home is not worth rehabbing, I plan to demolish and re-construct. I plan to re-construct another three story, single family home with an attached ADU. I would place one tenant in the top two floors, one in the basement and one in the ADU.

MY QUESTION: the city would probably view this as a triplex which the land is not zoned for. I have been researching and planning this tear down for near a decade and just hired the architect. He tells me re-zoning in Seattle is a nightmare and now with the new rental registration ordinance, the city can inspect and if they do, my non-conforming triplex could  be discovered. Of course for the build the city would get one set of plans and we would operate from another set of plans, not finishing the two additional "units" until after a certificate of occupancy and inspection has been performed.

Reading posts on here about folks buying non-conforming property suggest that there are appraisal, resale and insurance consequences involved.

Have I answered my own question here? Do I risk this and build it anyway? It will look like a typical single family from the exterior. Or, do I build a regular single family home and rent it to ONE renter? Seems like such a waste of space and land.

Rick H. · Answer

Sounds like you are suffering a little bit of myopia and attachment to this property.

Not sure how you acquired, whether purchased, inherited, foreclosed on note, etc. but this may not be the ideal property for you. Would you be open to sell, swap or 1031 tax free exchange it for other assets that perform according to you expectations?

I think the talk about circumventing permits and zoning is either venting about the frustration of the situation or that you're running out of ideas and energy.

Is demolishing the property and dealing with city hall, zoning politics ano building inspectors appealing to you? My vote is to put your creative energies and capital into a project that you can get excited about. Perhaps in the suburbs where rent control won't put a cap on your returns.

Give yourself permission to take another tact, especially after ten years of noodling this thing. It's getting too much free rent in your head.

Bryan R. · Answer

Nicole Sorensen Hull

I'd take a hard look at the numbers. You're talking about spending a lot of money to build a rental, money that could likely be put to better use elsewhere. I would consider some other options. Maybe exiting the property entirely, or doing a rental rehab.

Matt Devincenzo · Answer

Let's clarify here, you're not talking about building a non-conforming property.

Here's a past post where someone else in WA state made a post about "non-conforming" property. Non conforming is a property that doesn't conform to underlying zoning, but IS permitted/legal. You are talking about building an unpermitted (read illegal) unit.

I wouldn't do it. If you want to explore the triplex, but not wait for the zoning process have your architect work up plans that would allow an easy conversion in the future. Plan as if there was a 2nd/3rd unit (egress, layout ect). Once you have the home built pursue the rezone, if you get it then just do your interior remodel. Now you have a LEGAL property, but don't hold up everything over just a maybe on a possible rezone.

Brian Gibbons · Answer

Love that, too much free rent in your head...

Rob Beland · Answer

The key word is "permits". If you do work without permits and down the road go to sell as a triplex as an example and the buyer researches zoning regulations and occupancy levels on file, your deal will be dead and when the building inspector or code enforcement officer gets wind of it don't expect to be doing much business with him anymore. Bend the rules as far as you can without breaking them. Its a fine line though.

Michell P. · Answer

You may want to build it as a SFH with an ADU - and leave the basement with a kitchenette, bathroom, entertainment / living space & bedroom.  Its still just a large single family home, but you can rent it as a triplex or or use the basement for airb&b or try later to get a special permit.  When selling everything will be on the up & up.

I wouldn't anger city workers - it doesn't sound like a good time.

Rob Beland · Answer

You answered your own question. Its too risky and you are admittedly going against the local zoning ordinance and building code. Work with the existing structure and spend some time and money to see if you can rehab it and convert to two units with a special permit.

Nicole S. · Answer

@Adrian, the home is in the heart of West Seattle. You hit the nail on the head, the design of the house will be one of those contemporary conglomerates. We plan on adding a few traditional craftsman details to blend in with the neighborhood and keep the look timeless, well, that is the intent. The only thing is, I don't know if I want to sell it right away although I do know these homes sell for top dollar, it would be very tempting.

I asked my architect to use every SF of the land as possible and in turn he came up with a 10,000 SF design on a 6,500 SF lot. Impressive but overbuilt for the neighborhood unfortunately, I don't think there is a single 10,000 SF home in West Seattle!

After much discussion over the weekend, we decided to build the single family with a mother-in-law. It would be marketed to ONE tenant entity with the intention of legitimately moving their parents in the basement, that way we can still make full use of the three floors without breaking any zoning requirements.  I got this idea from another forum on this site. As for the additional ADU that might have to come at a later date.

Adrian Chu · Answer

Where is your home located?  Sounds like your home is in a good location.  Build 1 high-end contemporary style home and sell it.  People pay a premium for those and you will get top dollar for it.

In some parts of Seattle, there are move-in ready homes where the value of the land exceeds the price of the move-in ready home, because of the potential profits from building one of those contemporary homes.

Nicole S. · Answer

Great suggestion @Matt Devincenzo, my architect thinks we can do exactly as you suggest, rough everything in and build it out later.

Perhaps I'm misinformed. My understanding is that an existing "non-conforming" home is legal because it was constructed before current zoning laws were enacted. You have all confirmed what I feared, if I get a permit to build a single family home in a single family zone and in-turn build a "single family, non-conforming, triplex" by definition it would be illegal and will surely come with consequences.

Say no more! I do not want to go down that rabbit hole. =)

Build Non-Conforming Single Family? Too Risky?

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